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Over the last decade, trade credit has been subject to increasing government regulation in many countries. While such policies are intended to improve suppliers' financial sustainability, they may negatively affect supply chain performance by limiting the positive operational roles of trade...
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We study the relative merits of different dispute resolution mechanisms in two-sided platforms, in the context of disputes involving malicious reviews and blackmail. We develop a game-theoretic model of the strategic interactions between a seller firm and a (potentially malicious) consumer. In...
Persistent link: https://www.econbiz.de/10012828991
The paper focuses on an innovative bank-intermediated trade finance contract, which we call dynamic trade finance (DTF, under which banks dynamically adjust loan interest rates as an order passes through different steps in the trade process). We examine the value of DTF, the impact of process...
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Micro, small, and medium-sized enterprises in developing countries face severe financing difficulties, especially when trying to expand internationally. "Information friction" is a significant cause of this financing gap. Recent financial technologies (fintech) can improve supply chain finance...
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Trade credit is often extended by suppliers to buyers who often have easier access to external financing. Moreover, many buyers also delay paying their suppliers beyond the agreed due day. Prior literature attributes this phenomenon to quality assurance or buyer's abuse of market power. In this...
Persistent link: https://www.econbiz.de/10011897957